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Real Estate Principles of Georgia
Lesson 7: Civil Rights and Fair Housing
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Introduction
Federal and state laws prohibit discrimination: based on race, religion, sex, or other characteristics apply to almost all real estate transactions Particular laws vary in terms of: what groups they protect, and what types of activities and transactions they apply to.
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Federal Antidiscrimination Laws
Civil Rights Act of 1866
Civil Rights Act of 1866: prohibits discrimination only on basis of race applies to any type of real estate transaction: residential or commercial improved or unimproved
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Federal Antidiscrimination Laws
Civil Rights Act of 1866
Not widely used until after 1968 Supreme Court decision Jones v. Mayer : Court held act prohibits “all racial discrimination, private or public, in the sale and rental of property.”
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Civil Rights Act of 1866
Remedies
Remedies available under 1866 act include: injunction (order to stop violation) actual damages (to compensate plaintiff) punitive damages (additional amount as a penalty)
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Federal Antidiscrimination Laws
Civil Rights Act of 1964
Civil Rights Act of 1964 prohibits discrimination: based on race, color, religion, or national origin in programs and activities that receive financial assistance from federal government
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Federal Antidiscrimination Laws
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Civil Rights Act of 1968
Title VIII of the Civil Rights Act of 1968 is better known as the Fair Housing Act. Applies to sale or lease of: residential property vacant land to be used for residential construction
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Federal Fair Housing Act
Scope of law
In residential transactions, Fair Housing Act also prohibits discrimination in: advertising lending brokerage other services
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Federal Fair Housing Act
Scope of law
Fair Housing Act prohibits discrimination based on:
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Fair Housing Act
Exemptions: For sale by owner
1. Doesn’t apply to a single-family home rented or sold by a private individual if:
she owns no more than 3 such homes no discriminatory advertising used no real estate broker employed If owner isn’t most recent occupant, she may use this exemption only once every 24 months.
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Fair Housing Act
Exemptions: Owner-occupied rental
2. Doesn’t apply to rental of a room or unit in a dwelling with up to four units if:
owner resides in one of the units no discriminatory advertising used no real estate broker employed
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Fair Housing Act
Exemptions
3. Religious organizations may limit occupancy to members when dealing
with their own property. 4. Lodgings belonging to private clubs may give preference to their own members, so long as lodgings are not open to general public.
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Fair Housing Act
Exemptions
Fair Housing Act always applies to any transaction involving a real estate agent.
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Exemptions aren’t permitted when agent is involved. Agent may never discriminate.
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Fair Housing Act
Discriminatory Actions
• Refusal to rent or sell residential property after receiving a good faith offer. • Refusal to negotiate for the sale or rent of residential property. • Any other action that would make residential property unavailable.
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Fair Housing Act
Discriminatory Actions
• Discriminating in terms or conditions of sale or rental of residential property. • Discriminatory advertising that indicates a preference or limitation. • Representing that property is not available for inspection, rent, or sale when it is in fact available.
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Fair Housing Act
Discriminatory Actions
Fair Housing Act also prohibits: steering blockbusting redlining
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Discriminatory Actions
Steering
Steering: Channeling prospective buyers or tenants to or away from particular neighborhoods based on their race, ethnicity, or another protected characteristic.
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Discriminatory Actions
Blockbusting
Blockbusting: When someone tries to induce homeowners to sell by predicting that: members of minority groups will be moving into neighborhood property values and quality of life will suffer as a result
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Discriminatory Actions
Redlining
Redlining: When lender refuses to make mortgage loans in particular neighborhood because of its racial or ethnic composition.
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Fair Housing Act
Handicap
1988 amendments to Fair Housing Act added handicap and familial status as protected categories.
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“Handicap” refers to: physical and mental disabilities that substantially limit one or more major life activities.
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Handicap
Reasonable accommodations
Landlord must: make reasonable exceptions to rules for disabled tenants, and allow disabled tenants to make reasonable modifications at their own expense. Landlord isn’t required to modify property for tenant. Tenant can be required to restore property to original condition when tenancy ends.
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Handicap
Wheelchair accessibility
Fair Housing Act’s wheelchair access rules apply to new construction of residential buildings with four or more units. New construction: built since 1988. Entryways, hallways, kitchens, and bathrooms must be designed to accommodate wheelchairs. If building has an elevator, units above ground floor must accommodate wheelchairs.
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Fair Housing Act
Familial status
Familial status refers to parents or guardians who have children under 18 living with them. Generally illegal to refuse to rent or sell to someone because: she is pregnant he or she has children he or she is about to adopt or gain custody of children
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Familial Status
Housing for older persons
“Housing for older persons” is exempt from the prohibition against discrimination against families with children. Determining whether a property is intended for older persons involves consideration of: design, facilities, and advertising.
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Fair Housing Act
Housing for older persons
To qualify as housing for older persons, a property must fit one of three categories:
1. Developed under government program to assist the elderly.
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2. Intended for and solely occupied by people age 62 and older. 3. Intended for people age 55 and older:
designed to meet their physical or social needs, and at least 80% of the units are occupied by at least one person 55 years or older.
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Fair Housing Act
Enforcement
Office of Fair Housing and Equal Opportunity is part of Department of Housing and Urban Development (HUD). HUD sometimes uses testers: persons who pretend to be trying to obtain housing, to evaluate compliance with fair housing laws.
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Fair Housing Act
Enforcement
Person who feels she has been discriminated against in violation of Federal Fair Housing Act may: file a complaint with Office of Fair Housing and Equal Opportunity, or file a lawsuit in state or federal court. Complaint must be filed within one year of the discrimination. Lawsuit must be filed within two years.
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Enforcement
Administrative hearing
If complaint filed with HUD, agency investigates and tries to resolve issue between parties. If that doesn’t work, administrative hearing is held. HUD attorneys represent complainant, and administrative law judge hears case.
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Enforcement
Penalties
Possible penalties: an injunction against discriminatory activity, affirmative steps to correct a violation, compensatory and/or punitive damages, and/or a civil penalty paid to federal government.
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Summary
Federal Fair Housing Act
Civil Rights Act of 1866 Civil Rights Act of 1964 Fair Housing Act Steering Blockbusting Redlining
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Handicap Familial status
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Other Federal Laws
Americans with Disabilities Act
ADA (1992) is intended to ensure disabled people equal access to all public accommodations. Disability: any physical or mental impairment that substantially limits one or more major life activities. Public accommodation: a private entity with facilities open to the public. Examples: real estate offices, banks, stores
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Americans with Disabilities Act
Requirements
If “readily achievable” in public accommodation: architectural and communications barriers must be removed auxiliary aids and services must be provided New commercial construction must be accessible to disabled, unless structurally impractical.
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Georgia Antidiscrimination Laws
Georgia has its own Fair Housing Law with provisions mirroring those of the federal Fair Housing Act. It bars discrimination in housing, if it is based on race, color, religion, sex, handicap, familial status, or national origin. Georgia’s Fair Housing Law is enforced by the State Commission on Equal Opportunity.
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Summary
Other Federal Laws
Equal Credit Opportunity Act Home Mortgage Disclosure Act Americans with Disabilities Act Disability Public accommodation
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Complying with Fair Housing Laws
Violating laws doesn’t require intent to discriminate; even good intentions can lead to problems.
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Complying with Fair Housing Laws
Working with clients Real estate agents should never say or imply that presence of persons of a protected class in a neighborhood will:
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lower property values, change the neighborhood’s composition, create a more dangerous neighborhood, or cause a decline in the quality of schools.
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Complying with Fair Housing Laws
Working with clients Watch for signs of discriminatory attitudes to avoid helping others violate antidiscrimination laws. If sellers aren’t willing to follow the law, decline the listing.
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Complying with Fair Housing Laws
Discriminatory practices Certain statements/practices may be construed as discriminatory: Advertising property only in neighborhoods where residents are of same background as seller. Sending property flyer to all neighboring properties except those owned by people of particular race or background.
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Complying with Fair Housing Laws
Discriminatory practices Wording an ad so that it suggests that recipient can control who buys property (“uphold standards of the community”). Choosing non-diverse models in display advertising.
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Complying with Fair Housing Laws
Actions that don’t violate laws Asking questions or making statements as necessary to accommodate needs of disabled person. Positive measures to reach out to members of protected class.
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Discriminatory Restrictive Covenants Summary
Complying with Antidiscrimination Laws
Working with clients Advertising properties Non-discriminatory actions Discriminatory restrictive covenants
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